Deep Blue was the first computer that won a chess world championship. Deep Blue was a model based system with hardwired chess rules. In this gamma scalping forex method part of the mini-series we’ll look into the data mining approach for developing trading strategies.
This method does not care about market mechanisms. It just scans price curves or other data sources for predictive patterns. Machine learning principles A learning algorithm is fed with data samples, normally derived in some way from historical prices. Each sample consists of n variables x1 . The predictors, features, or whatever you call them, must carry information sufficient to predict the target y with some accuracy. They must also often fulfill two formal requirements.